Real Estate Investing: has anyone successfuly house hacked in high cost areas like NJ,NY etc where you cash flow after moving out? |
- has anyone successfuly house hacked in high cost areas like NJ,NY etc where you cash flow after moving out?
- $25,000 to work with
- How should I go about finding a good real estate agent in my area? I’m looking into buying a 4 family rental property.
- Advice on buying a property or renting while in college
- New Landlord- Passive Loss Limitations
- How Many Houses?
- Virginia foreclosure market
- First time investor in Philadelphia seeking feedback on deal analysis
- My neighbors house is for sale. I want to buy it and put an addition in my house that would extend over to that lot. Tax impact?
- Advice on purchase is desired
- Air BnB Insurance - Florida
- Purchasing rental properties from my father
- Unmarried Couple - First Investment Property
- What is the smallest down payment I need for a conventional loan on a duplex?
- To flip or not to flip....
- Buying apartment building parking spots
- How do you handle buy outs?
- Owner occupied duplex in LLC... does it make sense?
- Net profit?
| Posted: 12 Dec 2020 11:36 AM PST hey everyone, looking at 3 units around in north jersey at the moment and was wondering if anyone in the past has had success in house hacking and then cash flowing once you moved out. any tips? [link] [comments] |
| Posted: 12 Dec 2020 04:55 PM PST So I have $25,000 to invest and my sister recommended roofstock. I took a look, was finding $60,000 homes out in Illinois and Indiana that rent for about $750-$950 a month. Are these too good to be true? Could I pay 20% down, get a 10 year mortgage, find a property manager, have the rent pay the mortgage, and turn $25,000 into $120,000 in 10 years? [link] [comments] |
| Posted: 12 Dec 2020 07:18 AM PST I'm from MA. I'm looking at buying a 4 family in the Boston area. I'm thinking Roxbury, Everett, Chelsea, etc. How would I go about finding a good agent that will help me look for a good investment? [link] [comments] |
| Advice on buying a property or renting while in college Posted: 12 Dec 2020 11:22 PM PST Hello everyone, I am a 19 year old currently in my first year of college at a public university and am planning on moving into a house near campus with some close friends in the fall of 2021. I am currently saving money with the intention of buying a multi family and house hacking as soon as I graduate college. My question is instead of renting a house come the fall and purchasing a multi family in a few years, would it make more sense to just purchase a multi family come fall with possibly an FHA loan and let my roommates pay a majority of the mortgage? The intention after college would be to move into a different property and rent out the entire multi family to possibly other college students. I should have about $15,000-$20,000 in cash by the fall and duplexes around campus are selling from about $100,000 to $150,000. My income is about $25,000 a year and the only other debt i possess is a car payment of $150 a month. Thanks! [link] [comments] |
| New Landlord- Passive Loss Limitations Posted: 12 Dec 2020 04:43 PM PST Purchased an investment property late November. Lots of upfront expenses: closing costs, HOA fees, legal fees, flights, hotels, mileage, furnishing the place, etc. Of course, I was advised by everyone, including CPA, to use an investment property as a "tax shelter". Turns out, it seems as if I make too much money at my W2 to qualify for any deductions. I read about passive loss limitations, I really hope I'm misunderstanding. If I'm not, looks like this property is not a shelter at all. My understanding is that if you have a MAGI over 150k, you can't claim anything. Of course it's a Saturday, I've already started an application with a different CPA. In the meantime, does anyone have experience with this? Thanks. [link] [comments] |
| Posted: 12 Dec 2020 02:46 PM PST I own a house, which I'm refinancing, in TX. I'm buying another house in a few weeks as an investment, also in TX. And I have two others elsewhere that I've owned for a long time and don't intend to make any changes to. But then there's a strong chance that my employer will invoke my relocation contract if COVID gets better and require me to move to MA. So here's what I'm thinking -- if the contract gets invoked, buy a FHA-compliant small multifamily (2-4 unit) in MA in like June. Buy a different house later that year in MA if the family can join me then. So, can I FHA all of these or is there some kind of limit on how many of them you can do in a certain time period? [link] [comments] |
| Posted: 12 Dec 2020 04:37 PM PST First time homebuyer hoping to buy a foreclosed home in the near future. I'm wondering if any Virginians on this subreddit have had any experience in the foreclosure market recently and if so if you could tell me about it. What kind of deal did you get? How did you find it? How are renovations going so far? And if you haven't bought yet, do you think it isn't the time to buy or have you just not found a deal? Thanks [link] [comments] |
| First time investor in Philadelphia seeking feedback on deal analysis Posted: 12 Dec 2020 04:34 PM PST About me I'm a 28 y/o prospective real estate investor looking for feedback on a model I built for analyzing rental properties. My goal is to find and purchase an affordable cash flow positive multifamily home as a relatively low risk way to learn the ropes of real estate investing. Assuming things go well, this would be a stepping stone towards more and costlier investments in the future. I'd love help from all of you analyzing my model, assumptions, and finally the application of that model on a specific property in Philadelphia (where I live for now, but not forever) that seems attractive. Model I've built a spreadsheet to model the cash flows of using a 30 year fixed rate mortgage on a rental property, and a sale of the property at the end of the mortgage. Fixed assumptions:
Per property variables:
I model monthly cash flows as the sum of the expected rent, less expected vacancy and expenses (insurance, maintenance, and management fees). I model annual cash flows for taxes (paying property taxes and income taxes, but gaining mortgage rate, SALT, and depreciation deductions in excess of the standard deduction, multiplied by my marginal tax rate). Finally, the final sale returns the initial capital, plus appreciation, less 5% closing costs and 20% taxes on capital gains. The final value the model spits out as a measure of the strength of the deal is the net present value of all cashflows with a discount rate of 10%. The property I'm looking at this duplex in Grays Ferry, Philadelphia, listed at $189,900. Both units are currently tenant occupied paying a total of almost $1,900/mo. The NPV of this purchase, according to my model, is ~$30k. The estimated cash-on-cash return for the first year is something like 28%. Grays Ferry seems to be a popular area for house flipping, and the place looks like it could use some work, but I am not currently interested in spending the time to renovate the place in the near future. I would consider doing so in the next couple years if the payoff, in the form of increased rental prices and eventual sale price, made sense. For now, I don't feel I have the time or experience to commit to a place that needs renovation before it can be rented. In the meantime, I am assuming I would be able to continue collecting the same rent for the next couple years. Feedback First, I'd love feedback on the model I described. Am I missing anything that should be included in this model? Which of my assumptions need adjusting? Right now I've just been setting price and expected rent for each property, but I would imagine other things (e.g. maintenance) should be set per-property as well, I just lack the experience to understand how to do these evaluations. Second, what do you think of the property I shared? Any common pitfalls or red flags that I've missed I'm not sure how to tell the difference between a place that needs work and a place that could benefit benefit from some renovations but where it's not strictly necessary. Obviously if this place is the former, it may not be the right fit for me. Finally, any suggestions for how to best evaluate future deals with greater confidence, despite having zero practical experience with real estate? Thanks in advance for all of your help! [link] [comments] |
| Posted: 12 Dec 2020 02:37 PM PST Would the taxes be the same as the total of the two separate lots currently or would they be less by me making both lots one...? It's in New Jersey if that helps. [link] [comments] |
| Posted: 12 Dec 2020 06:52 PM PST Hello realestateinvesting. I'm currently eyeing a rental property opportunity and wanted to get your feedback. My profile: Full time employee working in government looking for easy to manage real estate properties. Not looking for high risk or low class properties in order to reduce day-to-day burden. Currently own a 200k home that I'm renting. Opportunity: 450k-500k property looking to be sold. Rents range around 2,400-2,600/month. Seller wants to cut the price of the home around 20-30k for a quick sale and no hassle transaction. In a HCOL growing area with OK rated schools. Home has good upgrades and good current owner, only professional repairs. Mortgage: 20 year conv PITI(HOA) looking around 1,700-1,800/month after heavy down payment. Cash Flow: Ranges from 600-900/month not accounting for expenses/vacancy/taxes I'm leaning toward yes. The 20-30k equity off the bat, lower risk of tenants and good repairs make me think this is a good enough deal to go for. [link] [comments] |
| Posted: 12 Dec 2020 06:45 PM PST Hi I was looking into purchasing a house in a great beachside community in the Florida West Coast. When it came to insurance my broker went looking for policies and came back saying that there are almost no carriers writing in Florida (especially costal market) that will accept short term rentals. The only option is for a surplus line,Lloyds market, which is insanely expensive, to the tune of 2.5x what a policy would cost if you weren't using the property as a short term rental. This makes any potential deal just about impossible. I asked what other hosts were doing and my broker said he was almost certain they were taking a huge risk by using their property in a manner that is not disclosed to their carrier (and has been specifically excluded from coverage) and if there ever was a claim very likely could have it denied. Is this it, the numbers are impossible with insurance at this cost and I have too much at stake to take that kind of risk, no possibility for this kind of investment I can enjoy? [link] [comments] |
| Purchasing rental properties from my father Posted: 12 Dec 2020 10:08 AM PST My dad (78) has rental property in Kansas City. We both live in another state and I've been managing the property for him for a couple of years. He's easily stressed and confused and doesn't want to deal with it. He's been getting calls from predatory distressed home buyers and tried to do a deal with one for about 1/2~1/3 the value (I estimate). Fortunately I was able to stop that. I'm trying to figure out the best way for him to sell these. I figure we could just list it on the market, or I could buy them from him. Either way, I'm not sure how to value the properties, and I'm not sure what we should do to pay the least amount of taxes or real estate fees. Step 1 is probably valuing. Zillow seems to be clueless. It doesn't seem to know what to do with a rental property, and in any case the data is all wrong because it's mixing up facts with adjoined townhomes. How do you go about figuring a fair value for a rental townhome? Then it seems like I either need to find a real estate agent or an attorney. Is there a better way? Can I likely just figure out the paperwork myself when it's an amicable family deal? He was wanting to sell them to me for a dollar with the provision that I'd pay him the profits for the rest of his life. I don't think that sounds like it would be legal to me. I think the IRS would look at that as an oversized gift and we'd owe taxes. [link] [comments] |
| Unmarried Couple - First Investment Property Posted: 12 Dec 2020 11:34 AM PST My partner and I just closed on our first investment property, a single family home that will be a rental. We are not married and we got the mortgage together. We live in a home that is solely in my name, and he has another home that's solely in his name that he's currently renting. We are planning to buy more properties in the future. My questions are: Appreciate any advice you can offer! [link] [comments] |
| What is the smallest down payment I need for a conventional loan on a duplex? Posted: 12 Dec 2020 09:44 AM PST I plan on buying a duplex next year and I am trying to minimize the down payment (due to savings). I have a credit score of 800 more or less and I have a middle class income. I plan on buying a duplex around $350K and am hoping for a down payment of 5% or less. After reading some blogs it looks like conventional loans require higher down payments on multi-families but I read that there are exceptions. Is my expectation of 5% accurate? Also, bonus question if youre feeling exceptionally generous today- I am assuming a conventional loan is better (versus an FHA loan) because from what I understand it is always better to utilize a conventional loan if youre able to afford the down payment (due to the extra fees and policies attached to an FHA loan). Is my assumption correct? Seriously thank you to anyone who responds. I am new to this and I am trying to learn as much as I can. [link] [comments] |
| Posted: 12 Dec 2020 01:08 PM PST I just looked at a property that has an addition built on with a flat roof. Problem is theres alot of water damage where the addition is added on. Has anyone ran across anything similar? Just wondering what other people's experience is with similar situations before I waste someones time to come out and give me a quote. [link] [comments] |
| Buying apartment building parking spots Posted: 12 Dec 2020 10:38 AM PST On Redfin occasionally will send me parking spots mixed in with the usual apartments and houses. Today I got one that happened to be in the building directly across from mine. Price is 15,000 and the ad says owner currently has 37 up for sale. Looks like there is a $60 HOA. Went on apartments.com for the building and says parking costs 250 a month. I am wondering if I can get a loan with 20% down for parking?? This seems like maybe too good to be true. Loan payment would be approx 150 a month I think? And hoa of 60 to get 210. So 40 bucks a month and 480 a year. 16% return? Are my numbers somewhat reasonable? Does anyone have an opinion on this? [link] [comments] |
| Posted: 12 Dec 2020 02:52 AM PST Say two people own property together TIC 50/50 both on tile and loan. One person wants to buy the other out. What are the usual steps to this? Do they need escrow? How can one be sure that the other will refinance? Do you need a bill of sale/papers from escrow for taxes? Or will the settlement contract and quitclaim suffice for taxes? [link] [comments] |
| Owner occupied duplex in LLC... does it make sense? Posted: 12 Dec 2020 03:00 AM PST Does keeping an owner occupied duplex in an LLC make sense? 2 units so I rent the other. My tax guy says the liability protection is good. However, I read that because I self manage, it would be hard to absolve myself from liability should anything happen. I also lose out on the capital gains exclusion if I sell later on. I have one other single family investment property in my name. Would consider liability insurance as an alternative. Reason I ask is because I am trying to refinance on the duplex but banks won't do it unless I transfer deed back to me because it's an agency Fannie Mae/Freddie Mac loan. Tax guy thinks I should look harder. Any thoughts? [link] [comments] |
| Posted: 12 Dec 2020 04:31 AM PST When flipping a house, what is the general rule of thumb for NET profit? Thanks! [link] [comments] |
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